Orica: Sale of Qenos to China National Chemical Corporation
Orica Limited announced, in conjunction with joint venture partner Exxon Mobil, that a binding Heads of Agreement has been signed to sell Qenos to China National Chemical Corporation. Details around the commercial terms of the sale agreement are subject to confidentiality. The sale is subject to Australian Foreign Investment Review Board and People's Republic of China (PRC) regulatory approvals. Following receipt of these approvals it is anticipated that the transaction will complete early 2006.
Orica will recognise an after tax loss of A$34M, relating to capitalised costs arising from the debt restructure in September 2004 and associated sale transaction costs. This amount will be disclosed as a significant item in the financial statements for the year ended 30 September 2005.
Qenos Holdings Pty. Ltd. is a company jointly owned by Orica (50%) and US company Exxon Mobil (50%). As the sole domestic producer of polyethylene plastics, Qenos enjoys the leading position in the Australian plastics market. The business services its customers from two facilities located at Altona in Melbourne and at Botany in Sydney, and employs approximately 850 people.
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